Thoughts on issues that matter most to our clients

Keeping a business going in tough economic times is no easy task. It seems that now more than ever, business owners have more issues to consider…more obstacles to overcome. Nearly every day, Rehmann business advisors hear from their clients regarding all types of concerns: business fraud, tax credits, how to increase cash flow, how to contain healthcare costs.

As the economy begins to inch toward a recovery, business owners are looking for ways to stretch their dollars, keep costs down and rebound with it. We talked to thought leaders throughout the firm about the questions business owners are asking and what they should be focusing on right now to help their business weather the storm.

It’s always been our plan to pass the company to our children, but since our business is worth less than it was a few years ago, we’re wondering if this is a good time to make the transfer.

“People often wrongly assume that a down economy is a bad time to implement a succession plan. In many cases, transferring ownership may be the wisest choice when the value of the business is lower. Of course, as is the case in all business decisions, there are a great many details to be considered…and each case is unique. The first step in the process must be a thorough examination of the individual business."

Michael Mayette, CPA/ABV, MST
Principal
Rehmann Consulting

For more on transferring business ownership, see Assessing Your Business’ Worth.

Business is beginning to pickup, but how can I keep the cash I need on hand until the payments start to come in?

“Even though some businesses are starting to see an increase in sales, cash flow continues to be a major concern for owners. Since cash is the lifeblood of business, companies have to get smarter about their spending. It’s imperative to keep the almighty dollar in your hands as long as possible…and there are some ways it can be done. But it takes patience and persistence.”

Carol Wright, CPA
Tax Principal
Rehmann

For more on controlling cash flow, see No Cash, Big Crash.

It’s so difficult to get financing and I’m not sure I can secure the credit line my business needs from my bank.

“Obtaining financing these days is more difficult than ever. Banks and other lending institutions have tightened their requirements so businesses often need to seek alternatives to the traditional options. Being prepared, developing a solid business plan and knowing where to look are the key in this ‘new world’ of securing business capital.”

Heidi A. Bolger, MBA, CPA/ABV
Founding Principal
Rehmann Consulting

For more on alternative financing, see The Hunt for Alternative Financing.

I want to continue offering my employees health insurance, but it’s getting more expensive every year. I’m not sure I can afford to continue.

“With healthcare spending ever increasing, companies are scrambling for ways to keep costs down. There are ways to balance this necessary benefit and keep the budget from taking too hard a hit. Companies must take a hard long look at their costs and develop a way to keep healthcare costs in line while offering their employees the coverage they need.”  

Jim Schafer, MPA
Managing Principal
Rehmann Healthcare Management Advisors

For more on controlling healthcare costs, see Healthy Employees and a Healthy Bottom Line.

We’re faced with some tough questions about the family business. We’re just not sure what course we should be on. Should we try to stay open? If we close, what will we do? What will happen to our employees…they’re part of the family, too. Is it time to close the doors?

“Closing a business is not something that business owners are familiar with; it’s a one-time experience – a highly emotional, often agonizing decision. Unfortunately, it’s a decision that some businesses are facing in this economy.

“Because of the comprehensive line of services Rehmann provides, we’re uniquely positioned to help a business owner look at their business, assess their situation and determine what’s next for them. Often there are ideas they haven’t thought of and we can help with those. But if the decision is to shutdown, we’re able to guide them through the myriad of questions and concerns and help them keep more control over the experience and leave more of the decision-making in their hands.”

Stephen L. Bush, CPA
Managing Principal
Rehmann

For more on shutdown services, see Exploring the Options of a Troubled Business.

There’s so much business fraud in the news today it does worry me, but I would know if something were going on in my own business. I’m confident that my employees are honest.

“It isn’t always easy to detect business fraud. In fact, by the time a business suspects a fraud, it has often been occurring for more than two years. A large part of the problem is that people don’t want to believe that the people they work with aren’t trustworthy. Business owners often make the mistake of relying on “Trust” as an internal control. My best advice to business owners is to be sure that they have an established oversight plan in place…and be sure it’s implemented.”

William J. Kowalski, JD
Vice President
Kerby, Bailey and Associates

For more on detecting fraud, see With Fraud on the Rise, Is your Business a Target?

The state legislature is considering so much new business tax legislation and I worry that the new laws will cost me more than I can afford to pay. What can I do?

“In an environment where revenue is flat or even down, understanding and controlling various tax costs can significantly increase net income. One thing is certain, in order to survive Michigan’s current economic environment, understanding how each of these tax proposals affects your business is crucial to achieving continued success.”

Michael Bozimowski JD, MST, CMI
Director of State and Local Tax Services
Rehmann

For more on the pending tax legislation, see Weighing in on State Tax and Budget Strategies.

My property value has fallen, yet my property tax hasn’t. Shouldn’t I be paying less?

“Particularly during a down economy, businesses are looking to cut costs. One area that is often overlooked is the property tax expense. With real estate prices falling, it is prudent for business owners to review their real property tax assessments to ensure that they are in line with the property’s value.”

Bryan L. Pukoff, CPA, JD
Principal in charge of tax services of Troy office
Rehmann

For more on real property values and taxes, see Reducing your Business Property Tax.

Any advice in this communication is not intended or written by Rehmann to be used, and cannot be used by a client or any other person or entity for the purpose of: (I) avoiding penalties that may be imposed on any taxpayer or; (II) promoting, marketing or recommending to another party any matters addressed herein. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.